Evenett, Simon J.; Keller, Wolfgang - 2022
We analyze two main theories of international trade, the Heckscher-Ohlin theory and the Increasing Returns trade theory … the Heckscher-Ohlin model generate specialization of production and the Gravity Equation, and it predicts inter-, not … endowment differences, making the perfect specialization version of the Heckscher-Ohlin model an unlikely candidate to explain …